A manufacturer is preparing to set the price on a new action game. Demand is thought to depend on the price and is represented by the model:
D = 2,000 - 3P
The accounting department estimates that the total costs can be represented by:
C = 5,000 + 4D
a. Develop a model for the total profit and implement it on a spreadsheet.
b. Develop a one-way data table to evaluate profit as a function of price (choose a price range that is reasonable and appropriate).
c. Use SOLVER to find the price that maximizes profit.© BrainMass Inc. brainmass.com June 22, 2018, 9:08 am ad1c9bdddf
The solution provides a detailed explanation how to use solver to find the maximal value.